The Sal Corporation had the following account balances on April 30. $8,700 $260,
ID: 2398321 • Letter: T
Question
The Sal Corporation had the following account balances on April 30.
$8,700
$260,000
$4,800
$25,200
$9,000
$18,000
$42,000
$2,700
$2,500
$4,800
$3,900
$31,000
Determine the amount of cash the company expects to collect from customers who owed the company on April 30.
$31,000
$22,000
$27,100
$18,100
Salary expense$8,700
Fees revenue$260,000
Supplies$4,800
Cash$25,200
Allowance for uncollectible accounts$9,000
Accounts payable$18,000
Common stock$42,000
Prepaid rent$2,700
Dividends$2,500
Supplies expense$4,800
Uncollectible accounts expense$3,900
Accounts receivable$31,000
Explanation / Answer
$22,000
Balance of Accounts receivable on Balance Sheet shows total gross amount expected to be collected from credit sales.But company estimates some amount can not be collected known as allownces for uncollectible account and is reduced from gross amount of accounts receivable.So, the amount of cash the company expects to collect from customers who owed the company on April 30 will be Accounts receivable minus Allowance for uncollectible accounts and is calculated as follows:
b.$22,000
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